- Bitcoin has tested key support, priming for a massive potential breakout.
- Analysts have warned this may be the last chance to buy before a parabolic rally.
- The Fed meeting has loomed as Bitcoin hovers at the brink of explosive gains.
After a sluggish few months, Bitcoin could be on the verge of a game-changing surge. For weeks, crypto investors have been holding their breath as the cryptocurrency flirted with key support levels, sparking speculation about what lies ahead.
Now, a growing number of analysts are pointing to historical patterns that suggest BTC could be gearing up for a dramatic rally, potentially soaring to heights above $90,000. The question on everyone’s mind: Is Bitcoin about to shake off its downtrend and embark on a three-month bull run?
Is Bitcoin’s Recent Slump Over?
Recent chart movements give them plenty of reasons to believe so. BTC recently retested a critical support level on the weekly chart, and analysts say this pattern is a strong indicator of an upcoming breakout. Titan of Crypto, a well-known figure in the space, took to X (formerly Twitter) on September 13 to explain how this technical signal could catapult BTC’s price upward.
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“In previous cycles, when the price retested the 50-week SMA, it bounced at least 40%. On average, the bounce was 71%. If #BTC rallies 71% from here, it could reach $92,000,” Titan of Crypto stated.
On September 14, BTC climbed back above the $60,000 psychological threshold for the first time since August 30, signaling a potential shift in momentum. Despite a more than 9% decline over the past three months, according to Bitstamp data, this recovery could mark the beginning of a new upward trajectory.
September has traditionally been a challenging month for BTC, with average returns of -4.69%, making it the most bearish month, according to CoinGlass data. However, history also shows that after September’s downturn, BTC often embarks on a three-month rally.
Bitcoin Average Monthly Returns, percentage. Source: CoinGlass
Historically, Bitcoin averages returns of 22.9% in October, its second-best month— 46.8% in November, and 5.4% in December. During the last halving year in 2020, the cryptocurrency surged over 27% in October and more than 42% in November, continuing an upward trend that lasted until March 2021.
Popular crypto trader Mags believes this current correction could be the last chance to buy Bitcoin before it skyrockets. “Bitcoin gives three chances to buy before it goes parabolic… The last is right after the halving. This could be your last chance to buy Bitcoin cheap before it goes parabolic,” Mags wrote in a September 15 post on X.
Bitcoin’s Bullish Outlook Amidst Fed Meeting
Adding to the bullish sentiment, pseudonymous on-chain analyst Checkmate observed that Bitcoin is mirroring its previous bull cycles. “Bitcoin is in the exact same spot as the last two cycles since the low. I prefer the cycle low comparison the most as it describes the psychological time it takes for investors to recover from a bear market,” he noted on September 14.
However, not everyone is convinced the path forward is clear. The “anxiety stage” of the market could bring more downside in September before the next leg up. This cautious outlook hinges on upcoming events like the Federal Reserve meeting on September 18, which could impact investor sentiment and market dynamics.
As Bitcoin navigates these pivotal moments, traders and investors are closely watching for signs of the next big move. Whether the cryptocurrency will indeed break past $90,000 remains to be seen, but the stage appears set for a potentially explosive fourth quarter.
On the Flipside
- Bitcoin’s historical patterns don’t guarantee a repeat in current market conditions.
- September remains one of Bitcoin’s worst-performing months, despite the recent price bump.
- The Federal Reserve meeting could bring new uncertainties impacting Bitcoin.
Why This Matters
As Bitcoin often serves as a bellwether for the broader crypto market, a surge past $90,000 could act as the rising tide that lifts all boats. If these bullish predictions come to fruition, it could ignite widespread gains across the crypto landscape, reinforcing Bitcoin’s role as a precursor to market-wide momentum shifts.
To learn more about the recent surge in Bitcoin’s price and the role of Bitcoin ETFs, read here:
Bitcoin ETFs See $263M Inflows as BTC Price Reclaims $60K
Is Bitcoin on the rise again? To learn more about Bitcoin’s recent price increase and what it might mean for the future, read here:
DailyCoin Bitcoin Regular: BTC Soars 3.6% Overnight, Is the Bull Back On?
